The Indian rupee declined 3 paise to ₹95.91 against the US dollar in early trading on Wednesday, September 16, 2026, as a stronger American currency and foreign fund outflows weighed on the domestic unit.
Forex traders said the rupee remained under pressure as the dollar index strengthened amid market expectations surrounding the US Federal Reserve’s monetary policy decision.
The Fed was scheduled to announce its policy decision later on Wednesday, with market participants closely watching its stance on interest rates and the outlook for the US economy.
Positive domestic equity markets provided some support to the rupee and helped limit the decline during early trading.
Meanwhile, elevated crude oil prices remained a concern for the Indian currency. Higher oil prices can increase India’s import bill because the country relies significantly on imported crude, creating additional demand for dollars.
Market participants are also monitoring developments in West Asia, where heightened tensions have contributed to volatility in crude oil prices and global financial markets.
The rupee’s movement is likely to remain sensitive to the Federal Reserve’s policy decision, dollar movements, foreign investment flows, crude prices and broader global market sentiment.
